In recent months, the apparel retail market of major importers like the United States and the United Kingdom has shown promising signs of growth. While import figures were lower in these key markets until September, retail sales data from October indicates a rise in purchases. This disparity between imports and sales is expected to result in a boost in apparel imports in the coming months.
According to recent data from Wazir Advisors, US apparel imports in September 2023 were 23% lower compared to the same period last year. Imports for the year until September were down by 22%. However, October saw a significant recovery, with estimated monthly apparel store sales reaching $18.1 billion, a 5% increase from October 2022 and a 6% increase year-to-date.
Similarly, EU apparel imports in September 2023 were 29% lower than in September 2022, with year-to-date imports down by 13%. UK apparel imports in September also saw a decline of 18% compared to the previous year and a 15% decrease on a year-to-date basis. However, October 2023 brought positive news, with UK monthly apparel store sales only 5% lower than October 2022 and a 7% increase year-to-date.
Sanjay Jain, the Managing Director of TT Textiles, noted that the disparity between imports and retail sales in these major markets suggests a reduction in pipeline inventory, which is expected to lead to increased demand going forward.
Moreover, the market share of China has decreased by 5% in the US market and 3% in Bangladesh since 2021. In the European Union market, China’s share experienced a 2% decline, while in the United Kingdom market, it dropped by 6%. This shift presents an opportunity for Indian exporters to capitalize on.
Overall, these developments indicate a positive outlook for Indian apparel exporters as they can expect improved import opportunities, particularly during the upcoming holiday season.
